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Hi Mike!
I am referring to the following link:
https://opentuition.com/topic/ias-36-11/1. “With an impairment, before we start allocating to different classes of asset, we eliminate goodwill – in full if necessary.” What do you mean by ‘if necessary’? Is it not an obligation to impair goodwill first and then the other asset?
2.In the question, impairment of the destroyed asset has been first allocated and then goodwill. Why so?
“What do you mean by ‘if necessary’? Is it not an obligation to impair goodwill first and then the other asset?”
Yes, but only if the impairment is the same as or greater than the goodwill figure
Imagine that we have a goodwill amount of $18,000 and there is an impairment of $13,000
Are you going to eliminate goodwill?
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